2.Component Costs Cost of Debt ki=kd (1-T) Interest is tax deductible OCost of Preferred Stock kp=Dy/Pnet Dividends are not tax deductible Pnet:Net of issuance costs 剥外校价贫多方号 YO年N0事0E00032.Component Costs zCost of Debt ki = kd (1 – T) Interest is tax deductible zCost of Preferred Stock kp = D p /Pnet Dividends are not tax deductible Pnet : Net of issuance costs